Geographic distance and innovation: The impact of distant knowledge acquired on patent value

Abstract

Measuring the value of inventions in the intellectual property landscape is a complex challenge. Experts rely on patent valuation techniques that use resources like the US Patent and Trademark Office (USPTO). This study contributes to patent value research by examining the relationship between the geographic distance among collaborating inventors and patent value indicators. Scholars have suggested that the value of an invention increases as the geographic distance between co-inventors grows. To test this proposition, the study conducted a regression analysis on a dataset of over two million USPTO patents. The analysis controlled for patent and inventor characteristics and consistently found a positive influence of geographic distance on patent value. These findings challenge assumptions and offer insights into collaborative innovation dynamics. They have significant implications for innovation management, urging inventors and organizations to carefully consider spatial factors and recognize the advantages of extended geographic distances when forming collaboration networks. By strategically selecting partners, inventors can optimize patent value, foster innovation, and navigate the evolving intellectual property landscape effectively.